A 4-year, $104m deal between the two parties has been officially revealed to ESPN

Although the process took some time, Stefon Diggs has signed a new four-year $104m contract extension with the Buffalo Bills. Not a surprising move by the Bills to keep QB Josh Allen's favorite target with the team.

The terms of the deal include $70m of the $104m being guaranteed money for Stefon Diggs. There are, however, two more years remaining on his existing deal with the Bills, Diggs' contract now runs through 2027 at a value of $124.1m.

Sources noted to ESPN that both Diggs and the Buffalo Bills want Diggs to retire as a Buffalo Bill. Whether that will happen is yet to be determined, but the new deal at least keeps him through 2027.

The Bills recently signed Josh Allen to a contract extension that will keep him with the team until 2028. Top wide receivers have been getting paid well over this offseason, Tyreek Hill and Davante Adams being two that netted over $60m.

Diggs has had two Pro Bowl appearances with the Buffalo Bills, catching 230 passes for 2,760 yards and 18 touchdowns. In 2020, he hit a career and NFL high in receptions at 127 along with 1,535 receiving yards and eight touchdowns. 

Bills General Manager Brandon Beane had this to say of Diggs, "I think the world of Stef. I think what he's brought our team has been great. He's been great for Josh. He's been great for our offense, and his leadership has stepped up, and we want to see Stef in Buffalo for years to come"

The Diggs extension should create a bit of salary cap room for the Buffalo Bills who entered the week with less than $1m in cap space.